Dow 31/07/01

ChartMan

Legendary member
5,580 46
Well! That was a nice little surprise today. All questions were answered in a flash. 400 was going to be support and nothing was going to be resistance until 165 points later- straight up.The "pennant " turned out to be a perfect continuation pennant and I'm back to using the 676/129 top and bottom for Fib. retracements.During the pennant, the DOW used 50% retacement as a base line (400), which is unusual, hence my questioning wether to use the points I used last night.Not to worry. If you look at the rising trend line from around 240 to 420, you can see that the pennant bounced off this line for it's last two support points, forming a triangle.I should have seen that last night- I must be blind- it was staring me right in the face!:) Still I was pretty sure it was up and away today, but had I seen that, I would have been certain..if ever you can about these things...Regretably for me, I was putting in new UPVC windows in the shop, so I didn't trade - and saw 150 points fly by.
Tomorrow brings a tale of woe....That rate of change is frequently non-sustainable and I expect a pullback to EITHER the 62% line which is 464, or the rising trend line, or both, as they are likely to intersect during trading.The bottom line is the rally failed to break 600 again, but we are moving ever onwards and upwards.I would say that the DOW is going to base at 464 for a while now, having solidly tested and retested 400 and found it to be no longer palatable.Notice the higher high on TCI, leading me to belive in the validity/acceptance of the 600 level .The prior test ( 676) failed because TCI failed to make the corresponding higher high.The other trendlines are (broadly) in a continuing uptrend, with the exception of Velocity and this broke the trend due to sell off...
 

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